We examine how relative performance evaluation (RPE) affects industry competition--a question relevant for corporate boards interested in incentivizing executives. Using U.S. airline data, we estimate a dynamic game of competition with heterogenous firms in an oligopolistic market with RPE...

A growing number of governments are persuading private firms to build and operate infrastructure projects for them. Since the initial contract between the government and firm is based on forecasted demand, the government can renegotiate to adjust it after demand is realized. We use stylized...

The economic crisis affected the Central and Eastern European economic spatial structure and reshaped perspectives at the European Union and international levels. Whereas Western Europe’s stable economic system has entered maturity, Eastern Europe’s economic landscape is still constantly...

Since the channel for agents' expectations matters for the effectiveness of monetary policies, it is crucial for policy-makers to assess the degree to which economic agents are boundedly rational and understand how the bounded rationality affects the monetary rules in stabilising the economy. We...